Roundup: Corruption allegations throw New Zealand election campaigns off course

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Less than three weeks from a general election, New Zealand Prime Minister John Key is coming under increasing pressure to open up his administration to a wide- ranging and thorough investigation into allegations that it colluded with right-wing bloggers to smear and embarrass political opponents and undermine public servants.

Opposition calls mounted Monday for a full and independent inquiry after Justice Minister Judith Collins' weekend resignation over leaked e-mails suggesting she was party to a campaign to smear the Serious Fraud Office and Financial Markets Authority law enforcement agencies and their chief officials.

The smear campaigns were apparently orchestrated by a public relations consultant, working for the former head of a failed finance company who was under investigation by the agencies, and two right-wing bloggers with connections to the ruling center- right National Party.

Key said in a televised press conference Monday that a retired judge would probably lead an independent inquiry into the allegations of a smear campaign and the extent of Collins' involvement.

The terms of reference -- expected to be announced with other details on Tuesday -- would be about the conduct of Collins.

ATTACK BLOGGERS

It is the second inquiry to be announced since the publication last month of a book detailing how people within the government worked with right-wing "attack bloggers" to damage opposition politicians and undermine public servants in order to maintain a positive image for Key.

After the "Dirty Politics" book by investigative journalist Nicky Hager came out, the chief watchdog of New Zealand's spy agencies announced she would investigate claims that the government manipulated information releases from intelligence agencies in order to embarrass opponents.

Inspector-General of Intelligence and Security Cheryl Gwyn said she would start an inquiry into allegations that the Security Intelligence Service (SIS) spy agency released official information to a blogger, regarding briefings provided to the then leader of the center-left opposition Labor Party, Phil Goff, in 2011.

Key's then communications advisor was alleged to have colluded with right-wing blogger Cameron Slater in forming the Official Information Act request to the SIS, which was "expedited" to embarrass Goff.

Hearings for that inquiry are to begin just nine days before the Sept. 20 election with Goff, staff from the prime minister's office and blogger Cameron Slater are expected to be summonsed to give evidence.

But Key, who is also Minister Responsible for the SIS, claims he was on holiday in Hawaii when the events took place and has been omitted from the list of witnesses being compelled to testify under oath, sparking outrage among opponents and critics.

PUBLIC CONFIDENCE

The Labor Party said Monday it was drafting terms of reference for a commission of inquiry, chaired by a High Court judge, into all the allegations of "Dirty Politics," including consideration of criminal conduct, in order to restore confidence in the country 's political system.

"Public confidence is needed to maintain democratic institutions and the rule of law. This in turn rests upon transparency and freedom from corruption," Labor's Shadow Attorney- General David Parker said in a statement.

The opposition Green Party called for a royal commission of inquiry that would be fully independent of the government and look into all the allegations of abuse of power.

"Regardless of how close we are to the general election, an inquiry of this nature must be independent of government. The fact that we are less than three weeks out from an election makes it that much more important for the prime minister to act with caution," Green Party co-leader Metiria Turei said in a statement.

"We will ask the royal commission to provide advice on new rules to strengthen our democracy so future governments can't engage in the dirty politics we have seen under National."

DECLINING TURNOUT

The "Dirty Politics" saga, which also includes allegations that one of the prime minister's staff worked with Slater to illegally gain details of donors and other information from the Labor Party' s database, has been dubbed "New Zealand's Watergate" and is being fueled by an anonymous hacker who is drip-feeding damaging e-mails hacked from Slater's accounts.

Key's administration, which had repeatedly garnered at or above 50 percent support in polls before the book's publication, had been riding a wave of economic confidence.

While those figures might have allowed the National Party to govern alone under the country's mixed member proportional representation system, the latest polls have seen the party's support slide to around 48 percent, meaning National would have to seek support from minor parties for a coalition.

That's presuming disillusionment with the political class doesn 't deter voters from casting their ballots.

At the 2011 election just 74 percent of registered voters turned out on election day -- the lowest proportion since 1978 -- and the decline could continue if voters see all parties tarred with the same brush. Endi

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